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Final report

of the
Missouri Bail Bond
Study Committee

Jan. 6, 2010

DIFP
Department of Insurance,
Financial Institutions &
Professional Registration

John M. Huff, Director


Overview of Study

I. Executive Summary

II. History of bail bond regulation in Missouri

III. Committee established/HB 577 requirements

IV. Surveys

V. Public hearings and meetings

VI. Issues and recommendations

VII. Appendix – proposed legislative language

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Executive Summary

In accordance with HB 577, passed by the Missouri General Assembly and signed by Gov. Jay
Nixon, the Missouri Department of Insurance, Financial Institutions and Professional Registration
(DIFP) submits the following report on the current state of regulation of the bail bond industry in
Missouri, along with recommendations for legislative, regulatory and policy changes. The law
requires DIFP to submit a report to the insurance committees of the Missouri House of
Representatives and Senate by Jan. 6, 2010.

The recommendations in this report were made by the Missouri Bail Bond Study Committee,
established by the DIFP director. The department and committee are committed to improving the
regulation and oversight of the bail bond industry and encourage the recommended changes be
made as they are essential to the successful operation of the bail bond industry in Missouri. For
more information on the committee and the process used in gathering information for the report,
see page 5.

The committee found numerous areas where enhanced state regulation is needed, including:
• Ban on allowing felons licensure in the bail bond industry
• More training and oversight of CE providers
• Implement financial pre-approval requirements and oversight
• Increased fines and enforcement for violations
• Prohibition on licensees from working in jails, law enforcement agencies or courts
• More specific statutory definition of the bail bond business
• Applying HB 600 (state income tax obligations) to licensees

These and other recommendations are explained in greater detail throughout the report, beginning
on page 7.

It has been a privilege to undertake this investigation and submit the following report, which the
department believes will provide Missouri with significant improvements in the regulation and
oversight of the bail bond industry.

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History

Regulation of the bail bond industry in Missouri began in 1983 with the passage and
implementation of Senate Bill 363. SB 363 provided for a dual-track system for posting criminal
appearance bonds in Missouri. Provisions of SB 363 were amended with SB 267 in 2001 to
include definitions for bail bond agent, general bail bond agent, property bail bondsman, surety
bail bond agent, surety recovery agent and provisions related to surety recovery. SB 1122, passed
in 2004, further amended the bail bond statutes to include licensure of surety recovery agents as
well as adding a number of other provisions to the bail bond laws such as initial basic training and
continuing education provisions.

Missouri statutes currently provide for licensure of: 1) bail bond agents who are employed by and
work for the authority of a property or surety general bail bond agent; 2) general bail bond agents
who are either surety agents or property bail bond agents and devote at least fifty percent of their
working time to the bail bond business; 3) surety recovery agents.

Surety bail bond agents are appointed by an insurer by power of attorney to execute or countersign
bail bonds in connection with judicial proceedings and receive or are promised money or other
things of value. Property bail bond agents pledge cash, property or other things of value as
security for a bail bond in connection with a judicial proceeding and receive or are promised
money or other things of value.

Various bills have been filed since 2004 to make changes to the bail bond statutes but have not
passed the General Assembly.

On August 28, 2009, provisions of HB 577, the department’s omnibus insurance bill, became law
directing the Missouri Department of Insurance, Financial Institutions and Professional
Registration (DIFP) to conduct a review of the regulation of the bail bond industry in Missouri.
HB 577 included the following language:

374.776. During the legislative interim between the first regular session and the second regular
session of the ninety-fifth general assembly, the Missouri department of insurance, financial
institutions and professional registration shall conduct a study regarding its licensing rules and
other policies and procedures governing the bail bond industry within the state of Missouri. The
department, in its discretion, may hold public hearings within the state and permit testimony and
input from surety insurance companies, general bail bond agents, bail bond agents, legislators,
law enforcement agencies, officials from the department, and other interested parties. If public
hearings are held, the director shall provide notice to all licensees licensed under sections
374.695 to 374.789 of the date, time, and location of such public hearings. The department shall
submit a report of its findings and recommendations to the house of representatives and senate
insurance committees no later than January 6, 2010.

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Missouri Bail Bond Study Committee

In order to gather broad input in the review of regulation of the bail bond industry, DIFP Director
John M. Huff appointed a 15-member bail bond study committee. This committee consists of
members of the Missouri legislature, law enforcement, the bail bond industry and the Missouri
court system.

The director named the following members to serve on the committee:

Name Group Represented Geographic Area


Senator Rita Days General Assembly St. Louis area
Representative Brian Yates General Assembly Kansas City area
Brenda Marshall Bail Bond Industry Ozark
William Laughlin Bail Bond Industry Eldon
Angela Park Bail Bond Industry Rolla
Jack Allison Bail Bond Industry Mexico
Bart Cooper Bail Bond Industry Kansas City area
Michael Thomas Bail Bond CE Provider Statewide
Rick Adams Associated Bail Agents of Missouri, Inc. Statewide
Nancy Griggs Office of State Courts Administrator Statewide
Laura Ellis Belton Municipal Court/MACA Statewide
Judge Dan Conklin Judiciary Greene County
Judge Vernon Scoville III Judiciary Jackson County
Sheldon Lineback Missouri Police Chiefs' Association Statewide
Charles Heiss Missouri Sheriffs' Association Statewide

The Bail Bond Study Committee held its first meeting on October 6, 2009, in Jefferson City. At
this planning meeting, the committee discussed the scope of the committee’s mission, locations of
public hearings around the state, and surveys of the industry and courts to gather issues for further
review by the committee.

Surveys of Bail Bond Industry and Courts

To assist the committee in identifying issues for discussion, the department sent a survey to all
individuals licensed under Sections 374.695 to 374.789, RSMo. The cover letter for this survey
also served as notice to all licensees as required in HB 577 of notice for public hearings and where
to sign up for e-mail notifications of the hearings on the department Web site. The department
sent 1,041 surveys and 264 responses were returned. Survey responses were received from 90
general bail bond agents, 168 bail bond agents, 3 surety recovery agents and two others who did
not indicate their occupation. Results of the survey were tallied and shared with the committee at
its first meeting to begin the discussion on the various issues. Key issues from the survey are
included in the Summary of Issues Identified by the Bail Bond Study Committee later in this
report.

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It was suggested during the first meeting of the committee that a similar survey be sent to the
circuit courts to identify issues the courts would like to see addressed. Pursuant to this suggestion,
a survey was sent by the Office of State Courts Administrator to 334 circuit and associate circuit
judges in the state. The department received 77 responses. Of the responses received, 47 were
from associate circuit judges and 30 were from circuit judges. The issues identified by the courts
are also included in the Summary of Issues Identified by the Bail Bond Study Committee.

Committee Public Hearings and Meetings

The committee held four public hearings in October and November 2009. The first hearing was
held on October 20, 2009, at the Missouri Department of Transportation’s Office in Lee’s Summit.
In addition to committee members and department staff, there were 30 in attendance with eight
individuals providing testimony to the committee.

The committee held its second hearing on October 27, 2009, at the Missouri Department of
Transportation’s Management Center in Chesterfield. In addition to committee members and
department staff, there were 14 in attendance with six individuals providing testimony to the
committee.

The committee held its third hearing on November 3, 2009, at the Missouri Conservation
Department Office Building in Springfield. In addition to committee members and department
staff, there were 23 in attendance with five individuals providing testimony to the committee.

The committee held its final hearing on November 10, 2009, at the Capitol Building in Jefferson
City. In addition to committee members and department staff, there were 26 in attendance with 12
individuals providing testimony to the committee.

The committee also received written testimony from four individuals.

At the conclusion of the public hearings, the committee held three additional meetings to develop
recommendations and draft a final report and legislative language. These meetings were held in
Jefferson City on November 17, November 24 and December 17, 2009.

Other States

The committee researched a number of other states that have strengthened their bail bond laws in
recent years. Florida, Arkansas and Colorado were referenced in a number of the survey
responses and public testimony. The committee also looked to Virginia and Texas statutes for
sample forms for the financial pre-approval requirements of the bond agents.

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Summary of Issues Identified by the Bail Bond Study Committee
• Prohibiting felons from licensure

• Additional requirements for general bail bond agent licensure - test, years as BBA

• Increase initial training requirement and approve CE providers

• Centralized, consistent financial pre-approval of property bail bond agents

• Increase amount allowed for certificate of deposit held by department

• Standard timeframe for forfeitures and judgments

• Increase fines and penalties for violations of laws

• Standardized power of attorney

• Bail bond regulatory board

• Approval process for bail bond agents moving from one general agent to another

• Cash bonds and 10% bonds by courts

• GED or high school diploma as requirement for licensure

• Bail bond licensees employed in a location where detainees are held

• Define bail bond business and what activities require licensure

• Compliance with HB 600 state income tax provisions

Issue 1: Prohibiting felons from licensure


Prior to passage and implementation of SB 1122 in 2004, if an applicant had entered a plea of
guilty or been found guilty of a felony, there was cause for denial of a license. SB 1122 amended
this restriction to “final adjudication or a plea of guilty or nolo contendere within the past fifteen
years in a criminal prosecution under any state or federal law for a felony or a crime involving
moral turpitude whether or not a sentence is imposed, prior to issuance of license date;”.

Survey responses from the courts and industry support the removal of the 15-year provision. Of
the 264 industry surveys received, 211 indicated that the 15-year provision should be eliminated.
Of the 77 court survey responses received, 70 indicated that the 15-year provision should be
eliminated. A number of witnesses at public hearings also supported prohibiting licensure of
felons.

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Florida and Arkansas prohibit licensure of felons, and Florida suspends the license of anyone
charged with a felony.

Bail Bond Study Committee Recommendation


The committee voted unanimously in favor of eliminating the current provision which allows a
new applicant who has not had a felony in the last 15 years to become licensed as a bail bond
agent. Committee voted 10 to 1 in favor of prohibiting new applicants who have a conviction or
Suspended Imposition of Sentence (SIS) for a felony from being eligible for licensure.

Issue 2: Additional requirements for general bail bond agent licensure


Current bail bond law requires applicants for general bail bond licensure to maintain their licenses
as bail bond agents for at least two years before becoming eligible. Bail bond industry survey
responses reflected that 85 individuals felt the current two year requirement is sufficient. There
were 156 responses that indicated the two-year requirement should be increased. This issue was
discussed at all four of the public hearings and the most frequently suggested requirement was
four years as a licensed bail bond agent. While the survey only addressed the two-year
requirement, a number of witnesses provided testimony centered on increasing the qualifications
for licensure in order to discourage those who were entering the business to “make a quick buck”
and did not have the necessary experience or knowledge. After a lengthy discussion, the
committee recommended requiring an additional examination for general bail bond agents that
would test the applicant on general bail bond business practices and knowledge of the
collateralizing of bonds, court procedures, forfeiture and judgment provisions, as well as reporting
requirements and financial qualifying of assets.

Bail Bond Study Committee Recommendation


Committee voted unanimously in favor of adding a testing requirement to the licensing
qualifications for a general bail bond agent and increasing the length of time from 2 years to 4
years as a bail bond agent before applying for a general bail bond license.

Issue 3: Increase initial basic training requirement and department approval process for CE
providers
Current law requires, prior to the application process, bail bond and surety recovery agent
applicants to complete 24 hours of initial basic training. Additionally, all licensed general bail
bond, bail bond and surety recovery agents must complete eight hours of biennial continuing
education. Bail bond survey responses were divided 155 to 92 against increasing the initial basic
training requirement. The survey responses did indicate additional training was needed for new
licensees in the form of a one-year internship before full licensure by a vote of 133 to 131 in favor
of a temporary one-year license. Public testimony at all four public hearings encouraged
increasing initial basic training with a number of individuals suggesting the equivalent of law
enforcement training requirements. Public testimony also expressed that the department needs to

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perform a more thorough review of classes offered by the training providers and to approve the
class instructors in addition to the approval of class curriculum. Committee members expressed
that additional training is needed but that existing training, both initial and continuing education, is
not always of the highest quality and often viewed by those attending as a waste of time and
resources. Committee members expressed desire for the department to more actively monitor
initial training and continuing education classes as well as establish an approval process for
instructors in addition to approval of class curriculum.

Bail Bond Study Committee Recommendation


Committee voted 9 to 0 with 1 abstaining to increase initial basic training from 24 hours to 40
hours and by the same vote to leave the continuing education requirement at eight hours per
biennial licensure period; additionally, the department should by rule develop approval process for
instructors, require classroom setting for all instruction and actively monitor classes for following
approved curriculum.

Issue 4: Centralized consistent financial pre-approval of property bail bond agents


This was one of the most frequently identified issues during the course of the committee’s study.
Survey questions did not raise the issue specifically but responses were received pursuant to the
question, “Do you think the current bail bond system in Missouri needs to be changed?”
Seventeen written responses concerning consistency in being financially approved with the courts
were received. Some written responses were quite lengthy with examples from various courts in
which licensees write bonds. The survey sent to the courts included the question, “Should the
department play a role in tracking a general bail bond agent’s assets and liabilities?” Judges
responded 54 to 16 in favor of the department taking a role in tracking of assets and liabilities. In
public hearing testimony the committee heard from several court administrators who felt the
existing laws were not clear and were not being enforced consistently across the state. Committee
members representing the judiciary and court administrators expressed concern over the workload
financial approval of agents would put on the already stressed court system. Industry members
stated submission of paperwork to multiple jurisdictions on varying schedules and with different
requirements also creates a burden for the industry. Committee members representing the court
administrators indicated they did not have the capacity to perform financial approval for all
counties centrally within the Office of State Courts Administrators. Department personnel
suggested adding the financial approval of agents to the existing structure of financial review of
insurance companies. Committee members felt the department would be better equipped to absorb
this responsibility in consideration of the substantial additional resources that would be required
by the courts if they were to perform financial approval in each jurisdiction. The committee had
lengthy discussions on what assets, reporting, ratios, limits and fees should be used for the
process. Committee agreed department should make a pre-approved list available to the courts at
least monthly.

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Bail Bond Study Committee Recommendation
Committee voted unanimously that a centralized system of financial approval of agents should be
established.
Committee voted unanimously that DIFP become the centralized financial approval agent.
Committee voted unanimously on quarterly filing of financial paperwork (once per year will
require more documentation) with the flexibility to allow the department to request monthly, if
needed.
Committee voted unanimously to deem cash, certificates of deposits and real estate as allowable
assets. Any other assets would require approval by department.
Committee voted unanimously to require appraisals from an appraiser licensed in Missouri and to
allow use of a tax statement, if an appraisal was not available.
Committee voted unanimously for a $50.00 filing fee to be remitted to the department for the
submission of quarterly financial filings.
Committee voted unanimously to increase the application and renewal fee for all licensees to
$300.00.
Committee voted unanimously to require submission of monthly outstanding bond reports to the
department.
Committee voted unanimously to use a ratio of 15 to 1 as for cap on bonds written to assets
pledged.
Committee voted unanimously to set a limit on any single bond written at 50% of total assets
pledged. Courts would be allowed to approve higher bonds at their discretion.

Issue 5: Increase certificate of deposit held by department


Current law requires each applicant for licensure as a general bail bond agent post a duly executed
assignment of ten thousand dollars to the state of Missouri. Bail bond survey responses, in
addition to written comments included with the survey, expressed that increasing the deposit held
by the department did not help with unsatisfied judgments to the courts. The deposit held by the
department is generally released to the courts only when the licensee has gone out of business.
Under the existing system of qualifying in individual courts, the possibility for the unsatisfied
judgments to exceed any deposit held by the department is almost assured. If agents were required
to qualify centrally, those assets pledged as security should be sufficient and the deposit would not
need to be increased. Committee members also discussed the existing language that already
allows the department to increase the deposit up to $25,000, if the circumstances of the business of
the general bail bond agent warrant additional funds.

Bail Bond Study Committee Recommendation


Committee voted 6 to 3 with 1 abstaining in favor of increasing the maximum deposit currently in
statute from $25,000 to $50,000 with the minimum required bond amount to remain at $10,000.

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Issue 6: Standard timeframe for forfeitures and judgments
The comments included on the survey responses as well as public hearing testimony indicate that
the existing statutes in Missouri for forfeiting a bond have been a source of confusion, not only for
the bail agent, but for the courts as well. The committee researched several other states and
reviewed how the bond forfeiture process varied within the state of Missouri. Missouri courts
varied in the time allowed from ten days to over one year before the full bond amount is due the
court. Most courts do not record a civil judgment against the general bail bond agent in a bond
forfeiture, thereby allowing the general to show the asset as unencumbered and use the asset to
establish a new general bonding company. The committee had lengthy discussions on the need for
a standardized and appropriate timeframe. The committee agreed that the Greene County Circuit
Court system currently in place allowing the bond agents 90 days before judgment is entered and
another 90 days if the full amount of the bond is posted provided a very workable bond forfeiture
schedule for both the court and the bond agent. The committee felt it was important to allow
courts flexibility in extending forfeiture periods as the desired result is always for the defendant to
be recovered and to appear in court. The committee also felt it was important to allow sufficient
time for the agents to recover the defendant. The committee recognized that tracking the bond
forfeitures will require additional work for the courts, but their recommendations call for
automation to assist in this process. The committee felt the benefits of tracking the forfeitures (i.e.
higher appearance rates, increased forfeiture revenue for the schools and for the municipalities and
holding all general bond agents to the same standards) offset what hopefully will be minimal
additional tracking if automation is maximized.

The committee pointed out that Missouri law allows a municipality to file a forfeiture in circuit or
associate circuit court.

479.210. In case of a breach of any recognizance entered into before a municipal judge or an
associate circuit judge hearing a municipal ordinance violation case, the same shall be deemed
forfeited and the judge shall cause the same to be prosecuted against the principal and surety, or
either of them, in the name of the municipality as plaintiff. Such action shall be prosecuted before
a circuit judge or associate circuit judge, and in the event of cases caused to be prosecuted by a
municipal judge, such shall be on the transcript of the proceedings before the municipal judge. All
moneys recovered in such actions shall be paid over to the municipal treasury to the general
revenue fund of the municipality.

Bail Bond Study Committee Recommendation


Committee voted 10 to 1 in favor of allowing 90 days from a defendant’s failure to appear until
bond forfeiture is entered, unless a bond forfeiture hearing is requested by the bail bond agent.
Committee voted 10-1 in favor of allowing a 90-day minimum extension on judgment if the full
amount of the bond is tendered to the court while allowing for courts to extend the final judgment
without tender for good cause. The committee voted unanimously that the following be deemed
good cause: (1) The defendant is incarcerated somewhere in the United States and is unavailable
for return to the court; (2) The defendant was incarcerated somewhere in the United States after
the date the defendant fails to appear and prior to the date of final judgment; (3) The defendant is

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being held in another jurisdiction and the bail bond agent asks the court for leave to return the
defendant to the court issuing the warrant; (4) The defendant has been deported; (5) The death of
the defendant; and (6) Other just causes accepted by the court. The committee also voted
unanimously that 30 days after final judgment the court shall distribute the amount tendered in
accordance with the laws.

If the amount has not been tendered, the committee recommended that the courts immediately
record the forfeiture in the same manner as a transcript judgment. If the forfeiture is in a
municipal division, the committee recommended that the municipality follow the procedure
prescribed in 479.210, RSMo and immediately file an action in circuit court. The committee
recommended changes to JIS, the case management system for state courts and 40 municipal
courts, so that judgments are automatically recorded at the end of 90 days, unless the above
conditions were met. Many of the municipalities use similar software systems and it was the
committee’s recommendation that with a standardized procedure, the software systems can be
modified so the process is as automated as possible. The committee emphasized that this is a
compromise, an attempt with a standard procedure to allow the bond agent time to find and deliver
the defendant and provide the court assurance that the bond would be forfeited in due time if the
defendant cannot be located.

Issue 7: Increase fines and penalties for violations of laws


The bail bond survey questions did not address increasing the fines and penalties for violations.
Testimony that this was needed was included at each of the public hearings. Hearing comments
revolved around the central idea that the department be granted stronger enforcement authority
and levy fines in amounts that serve as deterrents to further violations of bail bond laws. The
committee members were in agreement that it was not enough to pass the laws but also that they
need to address the violations and provide the department with sufficient resources to carry out the
enforcement.

Bail Bond Study Committee Recommendation


Committee voted unanimously that the department needed increased fines and increased resources
for enforcement.

Issue 8: Standardized power of attorney


Public hearing testimony and committee discussions supported the creation of a standardized
power of attorney form. This template, which the general bail bond agents could produce
themselves, would provide courts with consistent information and assist courts in identifying
fraudulent powers of attorney. A consistent and complete power of attorney form would also
assist the courts in notifying agents when forfeitures occur.

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Bail Bond Study Committee Recommendation
Committee voted unanimously for the power of attorney to be in the form and manner prescribed
by the department with the understanding that such format, as opposed to the form itself, would be
provided by the department.

Issue 9: Bail bond regulatory board


The industry and court surveys did not address the issue of a bail bond regulatory board. Public
hearing testimony raised the issue of creating a professional licensing regulatory board within the
department’s Division of Professional Registration. Staff from the Division of Professional
Registration provided a presentation to the committee on the process and costs involved with
establishing a regulatory board. Board members would be appointed, not elected by the industry.
Each professional board is required to pay its own expenses of operation including, but not limited
to licensing activities, legal costs and a proportionate share of administrative support staff. Legal
representation for the board would be provided by the Attorney General’s Office and the board
would be billed for costs associated with such representation. The committee compared estimated
costs of continued regulation by the department versus regulation by an appointed board. The
committee also discussed establishing an advisory board to the department, which would be
appointed by the director.

Bail Bond Study Committee Recommendation


Committee voted 7 to 2 in favor, with 1 abstaining, for the establishment of an advisory group
rather than a regulatory board. Committee then voted 9 to 2 in favor of having the advisory group
be an ad hoc (not in statute) advisory group called together by the department as needed.

Issue 10: Approval process for bail bond agents moving from one general agent to another
Industry survey responses indicated by a tally of 148 to 95 that a bail bond agent should be
required to obtain a release from his/her current general bail bond agent prior to working for a new
general bail bond agent. This would allow the former general agent to ensure all powers of
attorney were accounted for and all funds were received as required. While there was limited
public testimony on this issue, one written testimony referenced the Florida statute that provides
for an appointment approval process to be used when a bail bond agent changes from one general
agent to another. The committee, after much discussion, was still split on whether it should
remain a contractual issue between the general agent and bail bond agent or if there is a need to
require department involvement. The department currently has authority to take disciplinary
action against a licensee if, after an investigation, a bail bond agent is proven to not have
accounted for all powers of attorney and funds.

Bail Bond Study Committee Recommendation


Committee voted 4 to 5 with 1 abstaining that the department not be involved in approving the
transfer of an agent from one general to another. Committee encouraged department to take
disciplinary action on those found guilty of not accounting for all funds and POAs.

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Issue 11: Cash and 10 percent bonds by courts
The industry survey did not address the issue of cash and 10 percent bonds by the courts. The
court survey reflected that 74 judges allow cash bonds, 68 allow 10 percent bonds and 70 allow
secured bonds. Almost all courts allow 10 percent and cash bonds. The public hearing testimony
and committee discussion indicated that the courts use 10 percent and cash bonds for numerous
reasons including jail populations, cost of housing defendants in jail, traffic violations where the
cash bond covers any fines and court costs thus eliminating the need for the defendant to appear,
and due to circumstances under which a public defender will not represent a defendant who posts a
bond equal to $5,000 or more. Other public hearing testimony indicated it was unfair to the school
funds for the courts not to have to pay the full bond amount when forfeiture occurred. Public
hearing testimony cited that bail bond agents have a vested interest in recovering the defendant
after failure to appear.

Bail Bond Study Committee Recommendation


Committee voted 10 to 0 with one abstaining to include language that in all cases where the court
has set a bond requiring a percentage deposit, such bond may be satisfied by any licensed surety
guaranteeing said bond by posting a surety bond in the full face amount of the bond.

Issue 12: GED or high school diploma as requirement for licensure


Current bail bond law requires applicants for general bail bond, bail bond, and surety recovery
agent licensure to possess a high school diploma or general education development certificate
(GED). Written testimony was received requesting that the high school diploma/GED
requirement for licensing be reconsidered. Prior to passage of SB 1122 in 2004, a high school
diploma or GED was not required. With passage of SB 1122, those who were currently licensed
were grandfathered in and any new licensees were required to have either a high school diploma or
GED from a program credentialed by the Missouri Department of Elementary and Secondary
Education (DESE). Committee discussion emphasized the wide availability of GED classes and
also that DESE now makes available online classes and testing so it is readily accessible.
Committee members did not support allowing online GEDs from entities other than DESE.

Bail Bond Study Committee Recommendation


Committee voted 8 to 2 in favor of keeping the GED or high school diploma requirement for
licensure. Committee voted 9 to 1 in favor of accepting only DESE credentialed GED classes.

Issue 13: Bail bond licensees employed in a location where detainees are held
The department brought to the committee the issue of current language allowing licensees to work
in the physical location of a jail as long as the licensee was not employed directly by the jail. This
situation allows a loophole in which jails which might house other county or municipal activities
could have licensees working in the jail without being an actual employee of the jail. Committee

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expanded this discussion to include not only employees but also contractors and volunteers.
Discussion was also expanded to include the courts and law enforcement agencies, as well as jails.

Bail Bond Study Committee Recommendation


Committee voted unanimously to prohibit employees, contractors, and volunteers of the court, law
enforcement agency, or jail from being licensed as bail bond agents or general bail bond agents.
This prohibition includes any employee, contractor or volunteer who works at a jail, law
enforcement agency or court.

Issue 14: Define bail bond business and what activities require licensure
Committee members heard public testimony of instances where individuals who were not licensed
were performing activities that should be considered bail bond business and require licensure.
These activities included solicitation, completing bond contracts, investigative activities and
recovery work. Committee had discussions on how to define bail bond business to address these
circumstances but felt department would have more success in defining bail bond business and
activities in regulations rather than in statute.

Bail Bond Study Committee Recommendation


Committee voted unanimously that bail bond business as currently used in statutes needed to be
defined and should include: solicit, interview, contractually bind or otherwise physically engage in
the writing of bonds. Committee voted unanimously that the department should include the
definition in regulations rather than statute.

Issue 15: Compliance with HB 600 state income tax provisions


The department brought before the committee the fact that most other professional licensees fell
under the provisions of Section 324.010, RSMo, passed as part of House Bill 600 (2003). This
section mandates that all governmental entities issuing professional licenses, certificates,
registrations, or permits pursuant to various statutes notify the Department of Revenue (DOR)
before renewing a those licenses. If DOR determines there is a delinquency or failure to file
income taxes, the applicable department is informed and the license is suspended. Laws
pertaining to licensure of the bail bond industry are not currently included in this section of
statutes and, thus, not subject to this requirement.

Bail Bond Study Committee Recommendation


Committee voted unanimously in favor of extending HB 600 provisions to bail bond licensees.

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Appendix – proposed legislative language

374.702. 1. No person shall engage in the bail bond business as a bail bond agent or a general
bail bond agent without being licensed as provided in sections 374.695 to 374.775.

2. No judge, attorney, court official, law enforcement officer, or state, county, or municipal
employee who is either elected or appointed shall be licensed as a bail bond agent or a general
bail bond agent. No employee, contractor, or volunteer of a court, law enforcement agency,
or anyone employed at the location of a jail shall be licensed as a bail bond agent or general
bail bond agent. This provision shall not apply to an attorney whose license status is
inactive.

3. A licensed bail bond agent shall not execute or issue an appearance bond in this state without
holding a valid appointment from a general bail bond agent and without attaching to the
appearance bond an executed and prenumbered power of attorney referencing the general bail
bond agent and [or] insurer. The power of attorney shall be in the form and manner
prescribed by the director.

4. A person licensed as an active bail bond agent shall hold the license for at least four [two]
years prior to owning or being an officer of a licensed general bail bond agent.

5. A corporation, partnership, association, limited liability company, limited liability


partnership, or other legal entity shall not apply for a general bail bond agent license
unless operating as a surety bail bond agent.

6. [5.] A general bail bond agent shall not engage in the bail bond business:

(1) Without having been licensed as a general bail bond agent pursuant to sections 374.695 to
374.775; or

(2) Except through an agent licensed as a bail bond agent pursuant to sections 374.695 to
374.775.

7. [6.] A general bail bond agent shall not permit any unlicensed person to solicit or engage in
the bail bond business on the general bail bond agent's behalf, except for individuals who are
employed solely for the performance of clerical, stenographic, investigative, or other
administrative duties which do not require a license pursuant to sections 374.695 to 374.789.

8. [7.] Any person who is convicted of a violation of this section is guilty of a class A
misdemeanor. For any subsequent convictions, a person who is convicted of a violation of this
section is guilty of a class D felony.

374.705. 1. The department shall administer and enforce the provisions of sections 374.695 to
374.789, prescribe the duties of its officers and employees with respect to sections 374.695 to
374.789, and promulgate, pursuant to section 374.045 and chapter 536, RSMo, such rules and
regulations within the scope and purview of the provisions of sections 374.695 to 374.789 as the
director considers necessary and proper for the effective administration and interpretation of the
provisions of sections 374.695 to 374.789.

2. The director shall set the amount of all fees authorized and required by the provisions of
sections 374.695 to 374.789 by rules and regulations promulgated pursuant to chapter 536,
RSMo. All such fees shall be set at a level designed to produce revenue which shall not
substantially exceed the cost and expense of administering the provisions of sections 374.695 to
374.789. However, such fees shall not exceed three hundred [one hundred fifty] dollars every
two years for biennial licenses and renewable licenses for general bail bond agents as provided
for in section 374.710. Fees for filing quarterly financial statements shall not exceed fifty
dollars per filing.

374.710. 1. Except as otherwise provided in sections 374.695 to 374.775, no person or other


entity shall practice as a bail bond agent or general bail bond agent, as defined in section
374.700, in Missouri unless and until the department has issued to him or her a license, to be
renewed every two years as hereinafter provided, to practice as a bail bond agent or general bail
bond agent.

2. An applicant for a bail bond and general bail bond agent license shall submit with the
application proof that he or she has received forty [twenty-four] hours of initial basic training in
areas of instruction in subjects determined by the director deemed appropriate to professionals in
the bail bond profession. Bail bond agents and general bail bond agents who are licensed at the
date which this act becomes law* shall be exempt from such forty [twenty-four] hours of initial
basic training.

3. In addition to the forty [twenty-four] hours of initial basic training to become a bail bond
agent or general bail bond agent, there shall be eight hours of biennial continuing education for
all bail bond agents and general bail bond agents to maintain their state license. The director
shall determine said appropriate areas of instruction for said biennial continuing education. The
director shall determine which institutions, organizations, associations, and individuals shall be
eligible to provide the initial basic training and the biennial continuing education instruction. The
department may allow state institutions, organizations, associations, or individuals to provide
courses for the initial basic training and the biennial continuing education training. [The cost
shall not exceed two hundred dollars for the initial basic training and one hundred fifty dollars
for biennial continuing education].

4. Upon completion of said basic training or biennial continuing education and the licensee
meeting the other requirements as provided under sections 374.695 to 374.789, the director shall
issue a two-year license for the bail bond agent or general bail bond agent for a fee not to exceed
three hundred[one hundred fifty] dollars.

5. Nothing in sections 374.695 to 374.775 shall be construed to prohibit any person from posting
or otherwise providing a bail bond in connection with any legal proceeding, provided that such
person receives no fee, remuneration or consideration therefor.
374.715. 1. Applications for examination and licensure as a bail bond agent or general bail bond
agent shall be in writing and on forms prescribed and furnished by the department, and shall
contain such information as the department requires. Each application shall be accompanied by
proof satisfactory to the department that the applicant is a citizen of the United States, is at least
twenty-one years of age, has a high school diploma or general education development certificate
(GED), is of good moral character, and has not had a final adjudication or a plea of guilty or
nolo contendere in a criminal prosecution under any state or federal law for a felony or a
crime involving moral turpitude whether or not a sentence is imposed [meets the
qualifications for surety on bail bonds as provided by supreme court rule]. Each application shall
be accompanied by the examination and application fee set by the department. Individuals
currently employed as bail bond agents and general bail bond agents shall not be required to
meet the education requirements needed for licensure pursuant to this section. Bail bond agents
and general bail bond agents who are licensed at the date which this act becomes law shall
be exempt from the requirement of not having a final adjudication or a plea of guilty or
nolo contendere in a criminal prosecution under any state or federal law for a felony or a
crime involving moral turpitude whether or not a sentence is a imposed.

2. In addition, each applicant for licensure as a general bail bond agent shall furnish proof
satisfactory to the department that the applicant or, if the applicant is a corporation, partnership,
association, limited liability company, limited liability partnership, or other legal entity,
that each officer thereof has completed at least four [two] years as a bail bond agent, and that the
applicant [possesses liquid] has transferred to and deposited with the department, for the
security of its outstanding surety bond obligations, assets of at least ten thousand dollars[,
along with a duly executed assignment of ten thousand dollars to the state of Missouri. The
assignment shall become effective upon the applicant's violating any provision of sections
374.695 to 374.789. The assignment required by this section shall be in the form and executed in
the manner prescribed by the department.] in the financial institution of the department’s
choosing. Such deposits shall be in the form of cash, certificates of deposit, bonds or
treasury notes issued by the United States, bonds of the state of Missouri, or bonds of any
school district or political subdivision of this state, and in all cases not to be received at a
rate above their par value, nor above their current market value. The director may require
by regulation conditions by which additional [assignments of] assets of the general bail bond
agent may be required [occur] when the circumstances of the business of the general bail bond
agent warrant[s] additional funds. However, such additional funds shall not exceed fifty [twenty-
five] thousand dollars.

374.716. 1. Every bail bond agent shall account for each power of attorney assigned by the
general bail bond agent on a weekly basis and remit all sums collected and owed to the general
bail bond agent pursuant to his or her written contract. The general bail bond agent shall
maintain the weekly accounting and remittance records for a period of three years. Such records
shall be subject to inspection by the director or his or her designee during regular business hours
or at other reasonable times.

2. For every bond written in this state, the general bail bond agent [licensee] shall provide to
the parties [principal] a copy of the bail contract and receipts for any funds paid.
3. For every bond written in this state in which the premium is financed by the licensee, the
licensee shall provide, in writing, to all parties of the contract the following:

(1) the bond amount;

(2) the premium amount agreed to by all parties;

(3) the terms of the financial agreement;

(4) a receipt for the acceptance of any money; and

(5) date and signatures of all parties to the contract.

374.720. 1. Each applicant for licensure as a general bail bond agent, after complying with this
section and the provisions of section 374.715, shall [be issued a license by the department unless
grounds exist under section 374.755 for denial of a license.] appear for examination at the
time and place specified by the department. Such examination shall be as prescribed by the
director as provided under section 375.018, RSMo, and shall be designed to test the
applicant's knowledge and expertise in the area of surety bonds in general and the practice
of a general bail bond agent, as defined in sections 374.700 to 374.775, in particular. The
applicant shall be notified of the result of the examination within twenty working days of
the examination. Any applicant who fails such examination may, upon reapplication and
payment of the reexamination fee set by the department, retake the examination.

2. Each applicant for examination and licensure as a bail bond agent, after complying with the
provisions of section 374.715, shall appear for examination at the time and place specified by the
department. Such examination shall be as prescribed by the director as provided under section
375.018, RSMo, and shall be designed to test the applicant's knowledge and expertise in the area
of surety bonds in general and the practice of a bail bond agent, as defined in sections 374.700 to
374.775, in particular. The applicant shall be notified of the result of the examination within
twenty working days of the examination. Any applicant who fails such examination may, upon
reapplication and payment of the reexamination fee set by the department, retake the
examination.

374.730. 1. All licenses issued to bail bond agents and general bail bond agents under the
provisions of sections 374.700 to 374.775 shall be renewed biennially, which renewal shall be in
the form and manner prescribed by the department and shall be accompanied by the renewal fee
set by the department.

2. The department shall provide the director of revenue with the name and social security
number of each bail bond agent, general bail bond agent, or surety recovery agent
applicant for licensure or each bail bond agent, general bail bond agent, or surety recovery
agent licensee applying for renewal within one month of the date the application is filed or
at least one month prior to the anticipated renewal of the bail bond agent’s, general bail
bond agent’s, or surety recovery agent’s license. If such applicant or licensee is delinquent
on any state taxes or has failed to file state income tax returns in the last three years, the
director of revenue shall then send notice to each such entity and licensee. In the case of
such delinquency or failure to file, the applicant’s or licensee's license shall be revoked
within ninety days after notice of such delinquency or failure to file, unless the director of
revenue verifies that such delinquency or failure has been remedied or arrangements have
been made to achieve such remedy. Tax liability paid in protest or reasonably founded
disputes with such liability shall be considered paid for the purposes of this section.

374.740. Any person applying to be licensed as a nonresident general bail bond agent who has
been licensed in another state shall devote fifty percent of his or her working time in the state of
Missouri and shall file proof with the director of the department of insurance, financial
institutions and professional registration as to his or her compliance, and accompany his or her
application with the fees set by the director by regulation. Nonresident general bail bond
agents shall also transfer and deposit with the department, for the security of its
outstanding surety bond obligations, assets of [and, if applying for a nonresident general bail
bond agent's license, with a duly executed assignment of] twenty-five thousand dollars. These
assets shall be held in a Missouri financial institution of the department’s choosing. Such
deposits shall be in the form of cash, certificates of deposit, bonds or treasury notes issued
by the United States, bonds of the state of Missouri, or bonds of any school district or
political subdivision of this state, and in all cases not to be received at a rate above their par
value, nor above their current market value. [to the state of Missouri, which assignment shall
become effective upon the applicant's violating any provision of sections 374.695 to 374.789.
Failure to comply with this section will result in revocation of the nonresidence license. The
assignment required by this section shall be in the form and executed in the manner prescribed
by the department.] The director may require by regulation conditions by which additional
assets of the general bail bond agent may be required when the circumstances of the
business of the nonresident general bail bond agent warrant additional funds. However,
such additional funds shall not exceed fifty thousand dollars. All licenses issued pursuant to
this section shall be subject to the same renewal requirements set for other licenses issued
pursuant to sections 374.695 to 374.789.

374.755. 1. The department may cause a complaint to be filed with the administrative hearing
commission as provided by chapter 621, RSMo, against any holder of any license required by
sections 374.695 to 374.775 or any person who has failed to renew or has surrendered his or her
license for any one or any combination of the following causes:

(1) Use of any controlled substance, as defined in chapter 195, RSMo, or alcoholic beverage to
an extent that such use impairs a person's ability to perform the work of the profession licensed
under sections 374.695 to 374.775;

(2) Final adjudication or a plea of guilty or nolo contendere [within the past fifteen years] in a
criminal prosecution under any state or federal law for a felony or a crime involving moral
turpitude whether or not a sentence is imposed[, prior to issuance of license date];

(3) Use of fraud, deception, misrepresentation or bribery in securing any license or in obtaining
permission to take any examination required pursuant to sections 374.695 to 374.775;
(4) Obtaining or attempting to obtain any compensation as a member of the profession licensed
by sections 374.695 to 374.775 by means of fraud, deception or misrepresentation;

(5) Misappropriation of the premium, collateral, or other things of value given to a bail bond
agent or a general bail bond agent for the taking of bail, incompetency, financial
irresponsibility, untrustworthiness, misconduct, gross negligence, fraud, or misrepresentation
in the performance of the functions or duties of the profession licensed or regulated by sections
374.695 to 374.775;

(6) Violation of any provision of or any obligation imposed by the laws of this state, department
of insurance, financial institutions and professional registration rules and regulations, or aiding or
abetting other persons to violate such laws, orders, rules or regulations, or subpoenas;

(7) Transferring a license or permitting another person to use a license of the licensee;

(8) Disciplinary action against the holder of a license or other right to practice the profession
regulated by sections 374.695 to 374.789 granted by another state, territory, federal agency or
country upon grounds for which revocation or suspension is authorized in this state;

(9) Being finally adjudged insane or incompetent by a court of competent jurisdiction;

(10) Assisting or enabling any person to practice or offer to practice the profession licensed or
regulated by sections 374.695 to 374.789 who is not currently licensed and eligible to practice
pursuant to sections 374.695 to 374.789;

(11) Acting in the capacity of an attorney at a trial or hearing of a person for whom the attorney
is acting as surety;

(12) Failing to provide a copy of the bail contract, prenumbered written receipt for acceptance of
money, or other collateral for the taking of bail to the principal, if requested by any person who
is a party to the bail contract, or any person providing funds or collateral for bail on the
principal's behalf.

(13) Submitting a fraudulent, deceptive, or misleading financial statement or statement of


outstanding bonds to the department or a court in this state.

2. After the filing of such complaint, the proceedings shall be conducted in accordance with the
provisions of chapter 621, RSMo. Upon a finding by the administrative hearing commission that
one or more of the causes stated in subsection 1 of this section have been met, the director may
suspend or revoke the license or enter into an agreement for a monetary or other penalty pursuant
to section 374.280.

3. In lieu of filing a complaint at the administrative hearing commission, the director and the bail
bond agent or general bail bond agent may enter into an agreement for a monetary or other
penalty pursuant to section 374.280.
4. In addition to any other remedies available, the director may issue a cease and desist order or
may seek an injunction in a court of competent jurisdiction pursuant to the provisions of section
374.046 whenever it appears that any person is acting as a bail bond agent or general bail bond
agent without a license or violating any other provisions of sections 374.695 to 374.789.

374.757. 1. Any agent licensed by sections 374.695 to 374.789[75] who intends to apprehend
any person in this state shall inform law enforcement authorities in the city or county in which
such agent intends such apprehension, before attempting such apprehension. Such agent shall
present to the local law enforcement authorities a certified copy of the bond and all other
appropriate paperwork identifying the principal and the person to be apprehended. Local law
enforcement may accompany the agent. Failure of any agent to whom this section applies to
comply with the provisions of this section shall be a class A misdemeanor for the first violation
and a class D felony for subsequent violations; and shall also be a cause for discipline under
[violation of] section 374.755 or 374.787 and may in addition be punished pursuant to that
section.

2. The surety recovery agent shall inform the local law enforcement in the county or city where
such agent is planning to enter a residence. Such agent shall have a certified copy of the bond
and all appropriate paperwork to identify the principal. Local law enforcement, when notified,
may accompany the surety recovery agent to that location to keep the peace if an active warrant
is effective for a felony or misdemeanor. If a warrant is not active, the local law enforcement
officers may accompany the surety recovery agent to such location. Failure to report to the local
law enforcement agency is a class A misdemeanor. For any subsequent violations, failure to
report to the local law enforcement agency is a class D felony.

374.760. 1. Each property [general] bail bond agent shall file, with the initial application for
licensure and annually with the March 31 quarterly financial statement thereafter, the
following information:

(1) A financial statement in a form as determined by the department to be used as proof of


security for bail bonds written in this state. [between the first and tenth day of each month,
sworn affidavits with the department stating that there are no unsatisfied judgments against
him.] Acceptable assets for security consist of the following:

(A) Real estate located in the state of Missouri;

(B) Certificates of deposit issued by a FDIC-insured or NCUA-insured financial institution


located in the state of Missouri or cash held on deposit by such institutions;

(C) Amounts of joint deposit in accordance with 374.715.2 or 374.740; or

(D) Any asset that is not in the form of real estate, cash, or certificates of deposit issued by
a FDIC-insured or NCUA-insured financial institution that has been specifically approved
by the department. [Such statement of assets affidavits shall be in the form and manner
prescribed by the department.]
(2) If the property used as an asset is real estate the general bail bond agent shall submit to
the department:

(A) A complete real estate appraisal conducted within the last two years by a Missouri
licensed real estate appraiser showing the total market value of the property and a general
description of such property or a true copy of the current real estate tax assessment
thereof;

(B) An ownership and encumbrance report from a Missouri licensed title company; and

(C) When applicable, a copy of the mortgage statement from any federal or state financial
institution showing the amounts due under any obligations secured by liens or similar
encumbrances against the real estate, including any delinquent taxes, within one year of the
date of submission. At its discretion, the department may require additional
documentation to verify these amounts.

(3) Each general bail bond agent shall notify the director within 10 days of any transfer or
encumbrance of real estate included in the general bail bond agent’s statement of assets.

(4) If the property used as an asset is a certificate of deposit or cash, a true and complete
copy of a bank statement or other documentation from a financial institution dated within
one month of the date of submission showing the value of the account shall be submitted as
verification.

2. Each general bail bond agent shall file within thirty (30) days of the end of each
calendar quarter after initial licensure as a general bail bond agent or more often if so
directed by the department, a quarterly financial statement. Each general bail bond agent
shall file a statement of outstanding bonds with the department within five (5) days of the
first day of each month. Such statement of outstanding bonds shall be in the form and
manner prescribed by the department. Failure to file the quarterly financial statement or
monthly statement of outstanding bonds will result in immediate removal of the general
bail bond agent from the pre-approved list of general bail bond agents and is a cause to file
a complaint against the general bail bond agent under section 374.755.

(1) To verify the value of the quarterly reported assets and liabilities, the general bail bond
agent shall submit copies of the monthly bank statements reporting the value of the
reported certificates of deposit and cash balances received since the initial application or
prior quarterly financial statement filed with the department. The general bail bond agent
may, at his or her discretion, submit updated appraisals as often as desired to support the
market value of the real estate.

(2) The amount of bonds a general bail bond agent may issue shall not exceed the
limitations set forth in subsections three and four of this section. The department may, at
its discretion, request copies of all issued bonds reported on the statement of outstanding
bonds.
3. The director shall provide a list to the courts of all pre-approved general bail bond
agents in a form and manner prescribed by the director on at least a monthly basis. A
general bail bond agent shall be pre-approved to write outstanding bonds totaling fifteen
times the general bail bond agent’s assets less encumbrances. When the amount of a
general bail bond agent’s outstanding bonds is equal to or greater than fifteen times the
general bail bond agent’s assets less encumbrances, the general bail bond agent will be
removed from the pre-approved list until the general bail bond agent can demonstrate to
the department that either the amount of outstanding bonds has been reduced below fifteen
times the amount of the general bail bond agent’s assets or that additional assets have been
secured to allow outstanding bonds to fall below fifteen times the amount of the general
bail bond agent’s assets. Such additionally secured assets shall be submitted on a revised
quarterly financial statement with the appropriate supporting documentation. The
department shall update the pre-approved list of general bail bond agents on at least a
monthly basis.

4. The value of any one bond issued shall not exceed 50% of the general bail bond agent’s
secured assets less encumbrances unless specifically approved by the court. The general
bail bond agent shall, within 10 days of such issuance, notify the department and provide a
copy of the bond and court approval.

5. Intentionally providing fraudulent, deceptive, or misleading financial statements or


statements of outstanding bonds to the department or a court in this state is a class D
felony.

374.763. 1. If a bond is posted by a surety, who charges or receives compensation for


signing a bond, and the defendant fails to appear at a required court appearance, the court
shall immediately issue a warrant for arrest for the defendant, and shall enter a bond
forfeiture in favor of the state or municipality and against the general bail bond agent and
insurer as defined herein. The bond agent shall be allowed at least ninety days after the
defendant’s failure to appear before a forfeiture shall be considered a final judgment,
subject to the provisions set forth below. The forfeiture automatically becomes a final
judgment on the ninetieth day unless the court extends the time for final judgment entry.
The clerk of the court shall immediately provide notice of the forfeiture order to the
general agent or insurer to the address on file with the court. This section shall apply to all
divisions of the circuit court hearing such matters, including municipal divisions.

2. Upon request, at any time, of the bondsman, the clerk of the court shall, for the usual
cost for certified copies, provide a certified copy of the bond to the general bail bond agent,
bail bond agent or surety recovery agent.

3. The court shall extend the date for entry of final judgment no less than 90 additional
days, if the bondsman tenders to the court the full amount of the criminal appearance
bond.

4. The forfeiture order shall be set aside, if before final judgment or within 30 days after
the date of final judgment, the general bail bond agent establishes:
(1) The defendant is incarcerated somewhere in the United States and is unavailable for
return to the court;

(2) The defendant was incarcerated somewhere in the United States after the date
defendant fails to appear and prior to the date of final judgment;

(3) The defendant is being held in another jurisdiction and asks the court for leave to
return the defendant to the court issuing the warrant;

(4) The defendant has been deported;

(5) The death of the defendant; or

(6) Other just causes accepted by the court.

5. When the judgment under this section is final, the clerk of the court shall immediately
notify the department. Except in municipal divisions, when the judgment is final, the clerk
of the court shall file a copy of the final judgment in the office of the clerk of the circuit
court. The clerk of the circuit court shall file such judgment and enter it in the record of
the circuit court for judgments and decrees under the procedure prescribed for filing
transcripts of judgments.

6. Unless notice of appeal of the final judgment is filed, thirty days after final judgment, the
court shall distribute the amount tendered in accordance with the law and notify the
department of the satisfaction. If notice of appeal is filed, the amount tendered shall not be
distributed, and shall remain as tendered to the court pending appeal.

[If any final judgment ordering forfeiture of a defendant's bond is not paid within a six-month
period of time, the court shall extend the judgment date or notify the department of the failure to
satisfy such judgment.]

7. Thirty days after final judgment, if the bond forfeiture has not been paid, the general
bail bond agent’s authorization to write bail bonds in the State of Missouri shall
immediately be suspended until that judgment has been satisfied, vacated, or otherwise
discharged by order of the court and t[T]he director shall draw upon the assets of the surety,
remit the sum to the court, and obtain a receipt of such sum from the court. The director may
take action as provided by section 374.755, regarding the license of the surety and any bail bond
agents writing upon the surety's liability. The department shall notify the courts when a
general bail bond agent’s authorization to write bail bonds in the State of Missouri has
been suspended and when it has been reinstated.

8. Thirty days after final judgment, if an insurer fails to pay a bond forfeiture, the insurer’s
authorization to transact surety business in the State of Missouri shall immediately be
suspended until that judgment has been satisfied, vacated, or otherwise discharged by
order of the court. The department shall notify the courts when an insurer’s authorization
to transact surety business in the State of Missouri has been suspended and when it has
been reinstated.

[2.]9. The department shall furnish to the presiding judge of each circuit court of this state, on at
least a monthly basis, a list of all duly licensed and qualified bail bond agents and general bail
bond agents whose licenses are not subject to pending suspension or revocation proceedings, and
who are not subject to unsatisfied bond forfeiture judgments. In lieu of such list, the department
may provide this information to each presiding judge in an electronic format.

[3.]10. All duly licensed and qualified bail bond agents and general bail bond agents shall be
qualified, without further requirement, to write bail upon a surety's liability in all courts of this
state as provided in rules promulgated by the supreme court of Missouri and not by any circuit
court rule. In all cases where the court has set a bond requiring a percentage deposit, a
licensed surety may satisfy such bond by posting a surety bond in the full face amount of
the bond.

374.766. 1. If the director determines that a person has engaged in or is engaging in an act,
practice or course of business constituting a violation of sections 374.702 to 374.789 or a
rule adopted or order issued or pursuant thereto, or that a person has materially aided or
is materially aiding an act, omission, or course of constituting a violation of sections
374.702 to sections 374.789, or a rule adopted or order pursuant thereto, the director may
issue such administrative orders as authorized under section 374.046, RSMo. A violation of
sections 374.702, 374.710, 374.716, 374.719, 374.775, 374.783, and 374.789 is a level two
violation under section 374.049. A violation of sections 374.717 and 374.757 is a level three
violation under section 374.049. A violation of section 374.788 is a level four violation
under section 374.049.

2. If the director believes that a person has engaged in or is engaging in an act, practice or
course of business constituting a violation of this section or a rule adopted or order issued
pursuant thereto, or that a person has materially aided or is materially aiding an act
practice, omission, or course of business constituting a violating of this section or a rule
adopted or order issued pursuant thereto, the director may maintain a civil action for relief
authorized under section 374.048, RSMo. A violation of sections 374.702, 374.710, 374.716,
374.719, 374.775, 374.783, and 374.789 is a level two violation under section 374.049. A
violation of sections 374.717 and 374.757 is a level three violation under section 374.049. A
violation of section 374.788 is a level four violation under section 374.049.

374.770. [1.If there is a breach of the contract of the bond, the court in which the case is pending
shall declare a bond forfeiture, unless the surety upon such bond informs the court that the
defendant is incarcerated somewhere within the United States. If forfeiture is not ordered
because the defendant is incarcerated somewhere within the United States, the surety is
responsible for the return of the defendant. If bond forfeiture is ordered and the surety can
subsequently prove the defendant is incarcerated somewhere within the United States, then the
bond forfeiture shall be set aside and the surety be responsible for the return of the defendant.
When the surety notifies the court of the whereabouts of the defendant, a hold order shall be
placed by the court having jurisdiction on the defendant in the state in which the defendant is
being held.

2.]In all instances in which a bail bond agent or general bail bond agent duly licensed by sections
374.700 to 374.775 has given his bond for bail for any defendant who has absented himself in
violation of the condition of such bond, the bail bond agent or general bail bond agent shall have
the first opportunity to return such defendant to the proper court. If he is unable to return such
defendant, the state of Missouri shall return such defendant to the proper court for prosecution,
and all costs incurred by the state in so returning a defendant may be levied against the bail bond
agent or general bail bond agent in question.

374.775. [When issuing bonds of one thousand dollars or less, licensed bail bond agents or
general bail bond agents may charge a minimum premium of fifty dollars. In connection with
such] For bonds of one thousand dollars or less, except for the initial premium agreed to, no
bail bond agent, general bail bond agent, or corporation shall charge or receive any additional fee
for investigations or services rendered in connection with the execution of the bond.

374.783. 1. No person shall hold himself or herself out as being a surety recovery agent in this
state, unless such person is licensed in accordance with the provisions of sections 374.783 to
374.789. Licensed bail bond agents and general bail bond agents may perform fugitive recovery
without being licensed as a surety recovery agent.

2. The director shall have authority to license all surety recovery agents in this state. The director
shall have control and supervision over the licensing of such agents and the enforcement of the
terms and provisions of sections 374.783 to 374.789.

3. The director shall have the power to:

(1) Set and determine the amount of the fees authorized and required pursuant to sections
374.783 to 374.789. The fees shall be set at a level sufficient to produce revenue which shall not
substantially exceed the cost and expense of administering sections 374.783 to 374.789.
However, such fees shall not exceed [one hundred fifty]three hundred dollars for a two-year
license; and

(2) Determine the sufficient qualifications of applicants for a license.

4. The director shall license for a period of two years all surety recovery agents in this state who
meet the requirements of sections 374.783 to 374.789.

374.784. 1. Applications for examination and licensure as a surety recovery agent shall be
submitted on forms prescribed by the department and shall contain such information as the
department requires, along with a copy of the front and back of a photographic identification
card.

2. Each application shall be accompanied by proof satisfactory to the director that the applicant is
a citizen of the United States, is at least twenty-one years of age, and has a high school diploma
or a general educational development certificate (GED). An applicant shall furnish evidence of
such person's qualifications by completing an approved surety recovery agent course with at least
forty [twenty-four] hours of initial minimum training. The director shall determine which
institutions, organizations, associations, and individuals shall be eligible to provide said training.
Said instructions and fees associated therewith shall be identical or similar to those prescribed in
section 374.710 for bail bond agents and general bail bond agents.

3. In addition to said twenty-four hours of initial minimum training, licensees shall be required to
receive eight hours of biennial continuing education of which said instructions and fees shall be
identical or similar to those prescribed in section 374.710 for bail bond agents and general bail
bond agents.

4. Applicants for surety recovery agents licensing shall be exempt from said requirements of the
twenty-four hours of initial minimum training if applicants provide proof of prior training as a
law enforcement officer with at least two years of such service within the ten years prior to the
application being submitted to the department.

5. The director may refuse to issue any license pursuant to sections 374.783 to 374.789, for any
one or any combination of causes stated in section 374.787. The director shall notify the
applicant in writing of the reason or reasons for refusal and shall advise the applicant of the right
to file a complaint with the administrative hearing commission to appeal the refusal as provided
by chapter 621, RSMo.

374.785. 1. The director shall issue a license for a period of two years to any surety recovery
agent who is licensed in another jurisdiction and who:

(1) Has no violations, suspensions, or revocations of a license to engage in fugitive recovery in


any jurisdiction; and

(2) Is licensed in a jurisdiction whose requirements are substantially equal to or greater than the
requirements for a surety recovery agent license in Missouri at the time the applicant applies for
a license.

2. Any surety recovery agent who is licensed in another state shall also be subject to the same
training requirements as in-state surety recovery agents prescribe to under section 374.784.

3. [For the purpose of surrender of the defendant, a surety recovery agent may apprehend the
defendant anywhere within the state of Missouri before or after the forfeiture of the undertaking
without personal liability for false imprisonment or may empower any surety recovery agent to
make apprehension by providing written authority endorsed on a certified copy of the
undertaking and paying the lawful fees.

4.] Every applicant for a license pursuant to this section, upon making application and showing
the necessary qualifications as provided in this section, shall be required to pay the same fee as
required of resident applicants. Within the limits provided in this section, the director may
negotiate reciprocal compacts with licensing entities of other states for the admission of licensed
surety recovery agents from Missouri in other states.

374.788. 1. A bail bond agent having probable grounds to believe a subject free on his or her
bond has failed to appear as directed by a court, has breached the terms of the subject's surety
agreement, or has taken a substantial step toward absconding may utilize all lawful means to
apprehend the subject. To surrender a subject to a court, a licensed bail bond or surety recovery
agent having probable grounds to believe the subject is free on his or her bond may:

(1) Detain the subject in a lawful manner, for a reasonable time, provided that in the event travel
from another state is involved, the detention period may include reasonable travel time not to
exceed seventy-two hours;

(2) Transport a subject in a lawful manner from another state to within the state of Missouri,
and from county to county to a place of authorized surrender; and

(3) Enter upon private or public property in a lawful manner to execute apprehension of a
subject.

2. A surety recovery agent who apprehends a subject pursuant to the provisions of subsection 1
of this section shall surrender custody of the subject to the court of jurisdiction.

3. When a surety recovery agent is in the process of performing fugitive recovery, a


photographic identification card shall be prominently displayed on his or her person.

4. For the purpose of surrender of the defendant, a bail bond agent may apprehend the
defendant anywhere within the state of Missouri before or after the forfeiture of the
undertaking without personal liability for false imprisonment or may empower any surety
recovery agent to make apprehension by providing written authority endorsed on a
certified copy of the undertaking and paying the lawful fees.

Section A This bill shall be effective January 1, 2011.